Duke   University  Libraries 

Message  of  the 
Conf  Pam  #446 


h 


RCHIVES. 


HOUSE  OF  REPRESENTATIVES^  "Feb.  17,   ISGo— Laid  on 
table  and  ordered  to  be  printed;      ■  ,        ^  AK  '   \ 

[By  the  Chaik.]  ^**T-~--- 


MESSAGE  OF  THE  PRESIDENT. 

Richmond,  Va.,  Feb.  15,  iSG-5. 
2o  the  House  of  Representatives : 

In  response  to  your  resolution  of  *24th  December  last. 
I  herewith  transmit  a  comminiication  from  the  Secretary  of  War ; 
which  conveys  the  information  re(piested,  relative  to  the  number  of 
iron  furnaces  and  forges  worked  by  ngents  of  the  government  or  by 
contractors,  during  the  year  1  s()4,  and  to  the  cost  per  ton  of  the 
several  kinds  of  iron  furnished  by  them. 

JEFFERSON  DAVIS. 


COMMUNICATION  FROM  SECRETARY  OF  WAR. 

War  Depahtment,  C.  S.  A. 

Richmond,  Feb.  14,  1SG5. 

To  the  President  of  the  Confederate  States: 

Sir: 

I  have  received  the  following  resolution  of  the  House 
of  Representatives,  referred  by  your  Excellency  to  this  Department: 

"Resolved,  That  the  President  be  respectfully  requested  to  inform 
this  House — 

1st.  As  to  the  number  of  iron  furnaces  and  forges  worked,  in  the 
year  1SG4,  by  officers  and  agents  of  the  government  and  on  govern- 
ment  account. 

2d.  As  to  the  cost  per  ton  of  pig,  bloom  and  bar  iron,  resj^ec- 
tively,  at  such  furnaces  and  forges. 

3d.  As  to  the  nundier  of  iron  furnaces  and  forges  worked"  in  the 
same  time  by  the  proprietors^  under  contract  with  the  government, 
and  the  different  kinds  of  contract  so  made. 

4th.  As  to  the  cost  per  ton  of  pig,  bloom  and  bar  iron  delivered 
to  the  government  under  such  contracts." 

In  response.  I  have  the  honor  to  transmit  herewith,  a  report  from 
the  Chief  of  the  Nitre  and  Mining  Bureau,  containing  the  informa- 
tion called  for  by  the  House. 

Very  respectfully. 

Your  obedient  servant, 

JOHN  C.  BRECKINRIDGE, 

Secretary  of  War. 


I 


t^eport  of  chief  of  nitre  and  mining  bureau. 

Coxfedp:r.\te  States  of  America, 
War  Department, 

Nitre  and  Mining  Bureau, 
Richmond,  Va.,  Jan.  31,  1SG5. 


Hon.  James  A.  Seddon,  SecreUmj  of  War: 

Sir: 

111  rt'ply  to  the  enclosed  resolution  of  enquiry,  I  have 
the  honor  to  state — 

1st.  Seven  (7)  iron  furnaces  and  one  (])  forge  were  worked,  in  the 
year  IS64,  hy  ofhccrs  and  jigtMits  of  the  government  and  on  govern- 
ment account,  under  t!u'  direction  of  tliis  Bureau,  viz:  three  (3)  fur- 
naces in  Virginia,  two  {2)  furnaces  in  Alabama,  with  one  rolling  mill, 
and  the  usual  complenieiit  of  [tuddliiig  and  lieating  fires :  and  in  the 
Trans-Mississip[)i,  two  (^2)  i'urnaces  and  two  (2)  forges. 

'2(1.  The  "cost  per  ton  oi  pig,  bloom  and  bar  iron,  respectively,  at 
such  furnaces  and  forges,"  is  given,  as  closely  as  can  now  be  ascer- 
tained, in  the  enclosed  tabulated  statement  A,  in  Virginia,  with  pre- 
cision ;  from  Alabama,  by  telegraph,  and  probably  ap[)roximately ; 
from  the  Trans-Mississippi,  a<counts  have  not  yet  been  received. 

It  will  be  noted  that  the  Virginia  furnaces  have  been  worked  with 
all  the  interruptions  of  war — from  the  actual  presence  of  the  enemy 
to  the  impressment  of  supplies  by  our  ovvn  forces.  In  Alabama  the 
governmenc  furnaces  have  been  worked  in  an  abundant  country,  and 
almost  with  peace  regiihtrity. 

3d.  The  number  of  iron  furnaces  nnd  forges  worked  in  the  same 
time  by  the  proprietors,  under  contract,  are  given  in  statement  B. 
The  different  ibrms  of  contract  so  made  arc  indicated  by  the  general 
ferms  C  and  D,  used  by  the  Bureau:  the  first,  where  advances  of 
government  funds  have  Ixieti  madt;  to  coiiti'iictors,  and  the  last,  where 
not.  More  precise  information  can  only  be  given,  by  submitting  the 
contracts  in  bulk. 

It  is  proper  here  to  state,  that  to  stimulate  production  by  private 
interest,  an  i  to  throw  upon  the  market  an  additional  quantity  of  iron 
for  agriculture  and  the  rail  roads,  the  l^urcau  policy  has  been  to 
require  from  each  furnace  only  so  much  iron  as  the  military  requisi- 
tions exact — rangintr  I'rom  Hfry  (50)  per  cent,  where  no  government 
advance  has  been  made,  to  cighry-iliree  (S3)  per  cent,  where  advances 
•have  been  made.  Very  urgt-nt  ordnance  wants  occasionally  compel 
a,  departure  from  this  ride. 

4tli.  The  cost  per  ton  of  })ig,  hlooni  and  bar  iron  delivered  to  the 
government  under  such  contracts,  can  only  bi;  given  fi<.)m  the  price 
paid  by  the  government  i'or  siudi  deliveries,  us  stated  in  tsta'cement  E. 

Very  respectfully, 

I.  M.  ST.  JOHN, 

Col.   (I*  Chief  of  Bureau, 


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B — Continued. 

Names  of  Proprietors  of  Forges  operated  in  1864. 


CONTRACTORS. 

NAME  OF  WORKS. 

NO. 

COUNTY. 

STATE. 

Jame.?  &  Scott, 

Fox  Cre(>k  I'orge, 

Grayson, 

Virginia. 

Wilburii  Billing\s, 

New  River 

" 

>i 

Lee  N.  Painter, 

Pierce's            " 

Wythe, 

Fredeking  &  Isom, 

Peach  Bottom  Forge, 

Grayson, 

Goorjre  V.  Barton, 

Barton's                " 

Smyth, 

Park  &  .Tout's, 

Staly  Creek           " 

'■ 

James,  Scott  «fc  Co. 

Quebec 

*' 

William  A.  Williams, 

Liberty 

" 

Lockeit  &  Co. 

Cripple  Creek 

Wythe, 

G.  W.  Heuderlite, 

Stony  Cre>-k         '' 

Smyth. 

T.  Wilkinson, 

Wilkinson's          " 

Carroll, 

T.  Galyear, 

Collins                   " 

Grayson, 

Ferrer  &  Crosby, 

jMiissy  Creek        " 

Augusta, 

Bra.lv  &  Rex, 

Burtalo                   "       - 

TJnelcbridge, 

D.  »fe  H.  Forrer, 

Slienaudoah          " 

Page, 

H.  H.  Proi)e.s, 

Catherine               " 

" 

Lewi.s,  Craul'ord  &  Co. 

Mount  Vernou      " 

i 

Augusta, 

Piigh  &  Jones, 

Fox  Creek             " 

Grayson, 

William  Edwards, 

New  River            " 

" 

James  Gal^'i  ar. 

Peach  Bottom 

" 

Painter  »fc  Early, 

Chadwell               " 

Wythe, 

Joseph  Liniebeny, 

Liraeberry            " 

CaVroU, 

John  Bryant, 

Do.                   "       - 

" 

A.  Shape, 

Old  Liberty 

Smyth, 

John  C.  Collins, 

Collins                   " 
Total, 

25 

Grayson, 

William  Williams, 

- 

Catawba, 

N.  Carolina. 

Froneber^er  &  Co. 

' 

Cloaveland,   - 

Sheek,  Gibiaui  &  Co. 

- 

Surry, 

" 

R.  A.  Smith, 

- 

Catawba, 

" 

Garrett  Brothers, 

- 

Gaston, 

" 

John  W.  Quiun, 

- 

Cleaveland,  - 

" 

D.  Falls, 

- 

" 

" 

W.  J.  Staton, 

- 

Ijincoln, 

" 

Smith  &  Paine, 

- 

Catawba, 

" 

J.  Black, 

- 

Cleaveland,  - 

" 

Flippen  &  Dodson, 

- 

Surry, 

" 

Job  Worth, 

- 

" 

" 

Stephen  Hob.sou, 

- 

- 

*' 

Worth  &  Hiatt, 

- 

Surry, 

** 

Henry  Suow, 

- 

Yadkin, 

" 

C.  C.  Holyfield, 

- 

Surry, 

" 

Pass  &  Horton, 

- 

Yadkin, 

" 

Myers  &  Brother, 

- 

" 

" 

Robertson  &.  Dickson, 

- 

" 

" 

M.  Hiatt, 

- 

Surry, 

" 

Thomas  Lonp^, 

- 

Yadkin, 

" 

Long  &■  Williams, 

- 

" 

" 

S.  H.  Thompson, 

Little  Kiver  Forge,      - 

Alleghany,    - 

" 

Warden,  Billings  &  Edwards, 

Elk  Creek 

" 

" 

Cox  &.  Bryant, 

Do. 

Total, 

•■ib 

W.  L.  Ward  &  Co. 

_ 

1 

Bibb. 

Alabama. 

A.  F.  McGee, 

Total, 

1 

2 

Jefierson, 

The  capacity  of"  the  above  works  is  very  limited. 


[C] 
Contract  for  Pig  Iron,  with  W.  L.  Sanders. 

This  contract,  made  this  23cl  day  of  jVFarch  A.  D.  1863,  between 
W.  L.  Sanders  of  the  first  part,  and  the  Confederate  States  of  Ame- 
rica, throiiiih  I.  ISl.  St.  John,  Lieutenant  Colonel  and  Chief  of  the 
Nitre  and  Mining  Bureau,  of  the  second  part,  witnesseth,  that  in 
consideration  of  the  conditions  herein  after  named,  the  party  of  the 
first  part  covenants  and  agrees  to  manufafture  and  deliver  on  the 
cars  of  the  Alabama  and  I'ennessee  river  rail  road,  at  Montevallo, 
4,000  tons  pig  iron  per  annum,  of  whirh  not  more  than  15  per  cent, 
shall  bt;  in  No.  3  hot  or  cold  blast  iron  ;  not  more  than  3-5  per  cent, 
in  No.  2  hot  or  cold  blast  iron  ;  and  the  balance  to  be  in  No.  1  hot  or 
cold  blast  iron.  The  delivery  to  commence  within  10  days  after  this 
contract'  shall  have  been  duly  executed,  and  to  be  made  in  nearly 
efpial  quai'terly  installments  :  the  delivery  in  no  one  month,  however, 
to  fall  below  1-50  tons. 

As  there  is  a  haul  of  18  miles  from  the  works  of  the  party  of  the 
first  part  to  the  point  of  delivery,  and  the  roads  are  liable  to  be  so 
much  broken  up  by  bad  weather,  so  that  the  party  of  the  first  part 
may  not  be  able  to  deliver  the  full  amoimtof  1,000  tons  per  quarter, 
it  is  agieed  that  any  excess  of  iron  delivered  in  any  other  quarter 
shall  be  credite*!  to  the  quarter  in  which  he  may  be  deficient:  Pro- 
vided, That  in  no  event  he  shall  fall  below  the  amount  stipulated  to 
be  delivered  per  annum. 

The  iron  thus  delivered  is  to  be  subject  to  inspection  by  an  officer 
of  the  Nitre  and  ^Mining  Bureau,  or  an  authorized  agent  thereof,  and 
to  be  by  him  weighed  and  classified  as  to  the  quality  and  grade ; 
according  to  which  payments  are  to  be  made.  All  pig  metal  shall 
bear  ihe  initials,  and  the  name  of  the  furnace  marked  upon  the  pig. 

In  consideration  wlu'reof,  the  paily  of  the  second  part  agrees  to 
pay  to  the  party  of  the  first  pait,  his  agents  or  a.^signs,  after  inspec- 
tion. ])ro()f  and  approval  of  said  iron,  the  following  prices,  subject  to 
modification  and  reduction,  as  herein  after  provided,  to  wit: 

For  No.  1  charcoal  cold  bliist  pig  iron,  per  ton  of  :;i,240  lbs.  -  $75  00 

"      "    2                  '•          "            "            •'            ",  -  ()7  50 

"      "    :i                 *•          "            "            "            "  -  02  50 

"      "    1                 hot         "             "             '•             "  -  G.-)  00 

"      "    2                   "           "             "             "             "  -  .')5  00 

"      "    :5                  "          "            "            "            "  -  {JO  00 

All  payments  for  iron  delivered  shall  be  made  once  in  each  month. 

The  parties  hereto  mutually  reserve  the  right,  during  the  existing 
war  with  the  Unitt.'d  States,  to  modify  these  prices  so  as  to  preserve 
the  same  relation  between  the  price  of"  the  iron  and  the  cost  of  the 
articK'S  necessary  to  its  [iroduction,  as  is  established  in  the  above  re- 
cited scale ;  and  in  or<h;r  to  make  such  modifications  with  justice  to 
both  parties,  it  is  agreed  that  during  the  war,  when  either  party 
shall  so  desire,  a  board  of  assessment  shall  be  convened  to  review  the 


8 

above  scale  of  prices  :  Provided,  however,  That  no  such  board  shall, 
without  mutual  consent,  he  convened  prior  to  the  month  of  January 
1864,  or  more  frequently  there-ifter  than  once  in  each  year.  Said 
board  shall  be  composed  of  one  member,  chosen  by  the  party  of  the 
first  part;  of  a  second,  chosen  by  the  party  of  the  second  part;  and 
in  case  of  disagreement  of  these  two,  of  a  third,  to  be  chosen  by 
them  :  and  in  lieu  of  the  prices  above  enumerated,  the  prices  assessed 
by  the  board  for  the  different  grades  of  iron,  shall  be  paid  by  the 
party  of  the  second  part  until  modified  by  a  subsequent  board,  or  re- 
duced as  herein  after  provided,  by  the  establishment  of  peace  rela- 
tions with  the  United  States.  Such  reduction  shall  not  begin  until 
six  months  after  the  close  of  the  existing  war  :  Provided,  That  the 
price  of  provisions,  labor  and  forage  on  the  1st  day  of  January  1SG3 
shall  be  the  basis  upon  which  such  modification  of  prices  shall  be 
made. 

The  original  scale  of  prices  above  written,  subject  to  the  following 
modification,  shall  then  rule  and  control  the  compensation  of  the 
partv  of  the  first  part,  viz:  80  per  cent,  of  the  above  written  prices 
for  the  ensuing  six  months;  60  per  cent,  thereof  for  the  then  next 
ensuing  six  months ;  and  50  per  cent,  thereof  until  the  1st  day  of 
January  1867,  when  the  contract  shall  expire. 

It  is  expressly  agreed  by  the  parties  to  this  instrument,  that  a 
reservation  of  10  per  cent,  will  be  made  upon  all  payments  during 
the  first  year,  and  the  same  per  cent,  for  each  sub'^equent  year  until 
the  tei-minatiou  of  this  contract,  to  reimburse. the  party  of  the  second 
part  for  any  advance  made  to  the  party  of  the  first  part;  which  re- 
servation or  deduction  shall  be  accredited  yearly  as  a  reimbursing 
fund  upon  the  advance  made:  Provided,  That  said  reservation  or  de- 
duction of  10  per  cent,  on  gross  amount  due  for  iron  delivered,  shall 
be  sufftcient  to  repay  such  advance  by  the  1st  day  of  January  1867. 
Should  it  not  be  sufficient,  then  a  larger  per  cent,  shall  he  deducted; 
which  per  cent,  shall  be  fixed  on  the  1st  day  of  January  of  each 
year  for  the  ensuing  12  months,  faking  the  deliveries  of  the  previous 
year  and  the  length  of  time  this  couti'act  has  to  run  before  irs  termi- 
nation, as  the  basis  on  which  such  increased  deduction  shall  be  made. 

It  is  further  agreed  by  the  paiiies,  that  any  excess  in  the  quantity 
of  pig  iron  herein  named,  which  the  party  of  the  first  part  may  be 
able  to  produce  in  any  year  during  the  continuance  of  this  contract, 
shall  be  the  property  of  the  government,  and  will  be  received  and 
paid  for  at  the  prices  herein  before  provided  in  this  contract:  Provided, 
That  it  shall  be  at  the  option  of  the  party  of  the  second  part  to  re- 
ceive such  excess:  and  in  case  they  do  not  require  such  excess,  then 
the  party  of  tlie  second  part  shall  give  to  the  party  of  the  first  part 
a  notice  of  30  nays;  that  after  the  expiration  of  said  time  they  will 
only  receive  the  aujount  of  iron  stipulated  in  this  contract  as  absolute 
delivery. 

To  enable  the  party  of  the  first  part  to  finish  the  furnace  now  un- 
der construction,  it  is  agreed  that  the  party  of  the  second  part  shall 
advance  to  the  party  of  the  first  part  *  .'30,6oo,  in  bonds  of  the  Con- 
federate States  of  Aujcrica — one-half  on  the  signing  and  ratification 


of  this  contract ;  one-fourth  on  the  requisition  of  the  party  of  the 
first  part;  and  the  remaining  one-fourth,  upon  a  second  requisition 
of  the  party  of  the  first  part :  said  requisitions  to  be  accompanied 
by  a  certificate  of  an  inspecting  officer  (specially  apjwinted),  that 
the  antecedent  installments  have  been  judiciously  expended  for  ma- 
chinery, labor,  materials  and  fixtures  essential  for  the  production  of 
the  iron  hereby  contracted  for :  an(i  to  enable  the  inspecting  officer 
to  give  such  certificate,  full  information  and  access  to  the  books  of 
the  party  of  the  first  part  shall  be  given  to  the  inspecting  officer. 

It  is  further  agreed,  that  satisfactory  security,  in  twice  the  sum  of 
the  advance  so  made,  shall  be  given  by  the  party  of  the  first  part  to 
the  party  of  the  second  part,  for  the  return  of  the  money  so  ad- 
vanced, with  interest  at  the  rate  of  eight  per  cent,  per  annum,  if  the 
advances  are  made  in  treasury  notes;  but  if  the  advances  be  made 
in  bonds,  then  the  same  rate  of  interest  as  the  bonds  bear. 

To  insure  the  fulfillment  of  this  contract,  it  is  agreed  that  the 
partv  of  the  second  part  shall  reserve  10  per  cent,  on  all  payments 
due  for  iron  deliviM'ed  under  this  contract  until  its  completion.  This 
reservation  of  10  per  cent,  shall  be  refiuided  to  t\w  y);irry  of  the  first 
part,  upon  a  yearly  settlement  to  be  had  when  a  balance  of  interest 
shall  be  struck,  provided  it  shall  appear  that  the  party  of  the  first  part 
has  complied  with  the  provisions  of  this  contract.  And  it  is  further 
expressly  pntvided,  that  should  the  party  of  the  first  ]">art  willfully  re- 
fuse to  make  the  deliveries  to  the  party  of  the  second  part,  as  stated, 
or  deliver  iron  to  other  parties  (except  by  order  of  a  duly  authorize  d 
agent),  or  nuike  other  disposition  of  it  than  provided  for  in  this  con- 
tract with  the  Confederate  States,  or  for  any  other  purpose  than  exe- 
cuting this  contract,  as  above  stated,  or  shall  fail  to  refund  the  said 
advances  according  to  the  terms  and  stipulations  of  this  contract, 
the  party  of  the  second  part  shall  have  the  right  to  enter  into  and 
take  possession  of  the  said  iron  works  of  the  party  of  the  first  part, 
including  all  the  lands,  houses,  furnaces,  tenements,  wagons,  teams, 
toWs,  ttc,  and  other  things  thereto  belonging,  to  enable  the  party  of 
the  second  part  to  work  the  said  iron  works  on  their  own  account, 
during  the  existence  of  this  contract :  but  the  exercise  of  this  right 
by  tlie  said  Confederate  States  of  America  shall  not  be  held  or 
regarded  to  be  a  release  or  extinguishment  of  the  claim  of  said  Con- 
federate States  of  America  for  any  balance  which  may  be  then 
due  by  the  party  of  the  first  part,  on  account  of  advances  heretofore 
reserved  by  them  ;  but  the  said  party  of  the  first  part  shall  be  en- 
titled to  a  credit  from  said  Confederate  States  of  America,  during 
their  possession  of  said  property,  taken  and  used  as  aforesaid,  of  the 
annual  value  of  their  property;  said  value  to  be  assessed  each  year  by 
a  board  of  arbitrators,  one  of  whom  shall  be  selected  by  each  party, 
and  these  two  to  select  a  third:  Provided,  however.  That  should  it 
happen  at  any  time  that  cars  cannot  be  procured,  by  reasonable  dili- 
gence on  the  part  of  the  party  of  the  first  part,  for  the  purpose  of 
delivery,  then  and  in  that  event,  the  failtu'e  to  deliver  on  the  cars  shall 
not  be  considered  a  forfeiture  of  this  contract;  but  the  party  of  the 
first  part  is  authorized,  in  the  event  cars  cannot  be  procured  by  rea- 


10 

sonable  diligence,  or  in  the  event  they  are  not  furnished  by  the  rail 
road,  or  by  the  party  of  the  second  part,  to  store  or  deposit  the  iron 
at  or  near  the  point  of  delivery:  Provided,  That  a  seizure  of  the 
works  of  the  party  of  the  first  part  shall  .be  made  only  after  a  full 
investigation  of  the  alleged  defalcation  of  the  party  of  the  first  part, 
by  an  agent  duly  appointed  by  the  party  of  the  second  part,  and 
after  a  hearing  of  the  delience  of  the  party  of  the  first  part. 

The  party  of  the  second  part  reserves  the  right  to  decide  all  ques- 
tions arising  under  this  contract,  and  to  judge  of  the  execution 
thereof,  and  also  the  right  to  declare  the  same  forfeit,  should  there  be 
no  delivery  of  iron  within  ten  days  from  the  date  hereof;  or  if  at 
any  time  hereafter  the  party  of  the  first  part  shall  fail  or  refuse  to 
comply  with  the  covenants  and  agreements  herein  made. 

All  payments  on  account  of  this  contract  will  be  made,  when  the 
iron  is  received  and  accepted,  in  treasury  notes. 

Executed  in  duplicate,  the  day  and  year  first  above  written,  by 
the  signature  and  seal  of  the  said  W.  L.  Sanders,  and  ibr  and  in 
behalf  of  the  said  Confederate  States  of  America,  by  the  signature 
and  seal  of  I.  M.  St.  John,  Lieutenant  Colonel  and  Chief  of  the 
Nitre  and  Mining  Bureau  aforesaid. 

Signed,  sealed  and  delivered 
in  the  presence  of 

y.  B.  Waddell,  )  ^^  ^^  ^^^   ^   SANDERS.  [Seal.] 

J.  F.  Sellers,      >  ■-        j 

H.  F.  Reakdon,  as  to  I.  M.  ST.  JOHN,        [Seal.] 

Lt.  Col.  Sf  rk'f  Bur. 

Whereas  W.  L.  Sanders  did,  on  the  23d  day  of  March  1863,  enter 
into  a  contract  with  the  Confederate  States  of  America,  through  Col. 
I.  M.  St.  John,  for  the  manufacture  of  pig  iron: 

Now,  in  accordance  with  said  contract,  we  do  hereby  appoint«A. 
C.  Wurzbach  to  act  for  the  Confederate  States,  and  D.  H.  Kenney  to 
act  for  W.  L.  Sanders,  to  assess  the  prices  of  pig  iron  from  the  1st  of 
July  1863 ;  which  prices  are  to  be  fixed  until  another  board  of  com- 
missioners shall  be  appointed.  Should  these  two  above  named  cora- 
missioners  disagree,  they  shall  select  an  umpire. 

(Signed)  I.  M.  ST.  JOHN, 

Lf.  Col.  if  Ch'fBur. 
(Signed)  WM.  L.  SANDERS. 


11 

Selma,  July  1st,  1863. 

We,  the  board  of  commissioners  appointed  for  the  purpose  of  re- 
viewing the  prices  of  pig  iron,  and  assessingthem  anew  to  correspond 
with  the  prices  of  provisions  and  labor,  do,  in  accordance  witii  the 
above  instructions,  assess,  for  and  in  the  case  of  Wm.  L.  Sanders, 
that  he  receive  for  all  pig  iron  to  be  manufactured  and  delivered  after 
the  1st  of  July  1863,  S  100  for  No.  I  C.  B.  pig  iron;  $90  for  C.  B. 
pig  iron  No.  2  ;  and  S75  for  C.  B.  pig  iron  No.  3. 

Respectfully  submitted. 

(Sinned)  A.  C.  WURZBACH, 

(Signed)  D.  H.  KENNEY, 

Board  of  Commissioners. 

A  similar  assessment  for  1S64  fixes  the  prices  as  follow: 

For  No.  1  pig  iron,  cold  blast,      -  -  -         $160  per  ton. 

2  "  "  _  -  -  144        " 

3  "  "  -  -  -  118       " 


[D.] 
Contract  for  Iron. 

This  contract,  made  this  first  day  of  May  in  the  year  of  our  Lord 
one  thousand  eight  hundred  and  sixty-three,  between  A.  Thomas,  of 
the  county  of  Smyth,  State  of  Virginia,  of  the  first  part,  and  the  Con- 
federate States  of  America,  through  I.  M.  St.  John,  Colonel  and  Chief 
of  the  Nitre  and  Mining  Bureau,  of  the  second  part,  witnesseth,  that 
in  consideration  of  the  conditions  herein  after  named,  the  party  of  the 
first  part  covenants  and  agrees  to  manufacture,  at  the  Marion  Mag- 
netic furnace,  and  deliver  to  the  party  of  the  second  part,  at  Marion 
depot,  on  the  Virginia  and  Tennessee  rail  road,  free  of  cost  to  the 
government,  one  thousand  tons  of  charcoal  cold  blast  pig  iron  per 
year,  for  three  years  next  ensuing.  The  delivery  to  commence  within 
twenty  (20)  days  after  this  contract  shall  have  been  duly  executed, 
and  to  be  made  in  nearly  e(|ual  quarterly  installments — the  delivery 
in  no  one  month,  however,  to  fall  below  sixty  tons. 

The  iron  thus  delivered  is  to  be  subject  to  inspection  by  an  officer 
of  the  Nitre  and  Mining  Bureau,  or  an  authorized  agent  thereof,  and 
to  be  by  him  weighed  and  classified  as  to  the  quality  and  grade, 
according  to  which  payments  are  to  be  made.  All  "  pig  metal" 
shall  bear  the  initials  of  the  proprietor,  and  the  name  of  the  furnace 
stamped  upon  the  pig. 

In  consideration  whereof,  the  party  of  the  second  part  agrees  to 
pay  to  the  party  of  the  first  part,  his  agents  or  assigns,  after  inspec- 


12 

tion,  proof  and  approval  of  said  iron,  the  following  prices,  subject  to 
■  modification  and  reduction,  as  herein  after  provided,  to  wit: 

No.  1  charcoal  cold  blast  pig  iron  per  ton  (2,240  lbs.),  $100 

2  "  "  "  "  95 

3  "  "  "  "  90 

The  parties  hereto  mutually  reserve  the  right,  during  the  existing 
war  with  the  United  States,  to  modify  these  prices,  so  as  to  preserve 
the  same  relation  between  the  price  of  the  iron  and  the  cost  of  arti- 
cles necessary  for  its  production  as  is  established  in  the  above  recited 
scale;  and  in  order  to  make  such  modification  with  justice  to  both 
parties,  it  is  agreed  that  during  the  war,  when  either  party  shall  so 
desire,  a  board  of  assessment  shall  be  convened  to  review  the  above 
scale  of  prices:  Provided,  however.  That  no  such  board  shall,  with- 
out mutual  consent,  be  convened  prior  to  the  month  of  January  1864, 
or  more  frequently  thereafter  than  once  in  each  year. 

Said  board  shall  be  composed  of  one  member  chosen  by  the  party 
of  the  first  part — of  a  second,  chosen  by  the  party  of  the  second 
part — and  in  case  of  disagreement  of  these  two,  of  a  third,  to  be 
chosen  by  them:  and  in  lieu  of  the  prices  above  enumerated,  the 
prices  assessed  by  the  said  board  for  the  diflfcront  grades  of  iron  shall 
be  paid  by  the  party  of  the  second  part,  until  modified  by  a  subse- 
quent board,  or  reduced,  as  herein  after  provided,  by  the  establish- 
ment of  peace  relations  with  the  United  States.  Such  reduction 
shall  not  begin  until  six  montlis  aftei-  the  close  of  the  existing  war. 

The  original  scale  of  prices  above  written,  subject  to  the  follow- 
ing modification,  shall  then  rule  and  control  the  compensation  of  the 
party  of  the  first  part,  viz :  Eighty  per  cent,  of  the  above  written 
prices  for  the  ensuing  six  months;  sixty  per  cent,  thereof  for  the 
then  next  ensuing  six  months:  and  fifty  per  cent,  theieof  until  the 
thirtieth  day  of  April  1866,  when  the  contract  shall  expire. 

It  is  hereby  expressly  agreed  by  the  parties  to  this  instrument, 
that  a  reservation  of  fifteen  per  cent,  will  be  made  upon  all  payments 
during  the  first  year;  ten  per  cent,  for  the  second  year,  and  five  per 
cent,  for  the  third  year,  to  secure  the  fulfillment  of  this  contract. 

It  is  further  agreed  by  the  parties  to  this  instrument,  that  any  ex- 
cess in  the  quantity  of  pig  iron  herein  named,  which  the  party  of  the 
first  part  may  be  able  to  produce  in  any  year  during  the  continuance 
of  this  contract,  shall  be  the  property  of  the  government,  and  will 
be  received  and  paid  for  at  the  prices  herein  before  provided  in  this 
contract. 

To  enable  the  party  of  the  first  part  to  comply  with  the  letter  and 
spirit  of  this  contract,  the  party  of  the  second  part  will  authoiize 
transportation  over  the  public  rail  roads  and  canals  for  such  provi- 
sions as  he  may  deem  necessary,  and  use  every  efibrt  in  his  power  to 
protect  them  against  impressment  when  they  shall  have  been  accu- 
mulated. 

And  it  is  also  agreed  by  the  party  of  the  second  part,  that  out  of 
the  excess  in  the  quantity  of  pig  iron  herein  contracted  for,  the  party 


13 

of  the  first  part  shall  have  the  privilege  of  retaining  for  his  own  nse 
two  hundred  tons  per  annum. 

The  party  of  the  second  part  reserves  the  right  to  decide  questions 
arising  under  this  contract,  and  to  judge  of  the  execution  thereof, 
and  also  the  right  to  declare  the  same  forfeit,  should  there  be  no 
delivery  of  iron  within  thirty  days  from  the  date  hereof,  or  if  at  any 
time  hereafter  the  parry  of  the  first  part  shall  fail  or  refuse  to  comply 
with  his  covenants  and  agreements  herein  made. 

All  payments  on  account  of  this  contract  will  be  made  when  tlie 
iron  is  received  and  accepted,  one-third  in  bonds  of  the  Confederate 
States,  if  desired  by  the  party  of  the  second  part,  and  the  residue  in 
treasury  notes. 

Witness  our  hands  and  seals  this  first  day  of  May  in  the  year  of 
our  Lord  one  thousand  eight  hundred  and  sixty-three. 

Witnesses : 

Albert  G.  Simon.  ABIJAH  THOMAS.  [Seal.] 

James  L.  Taylor.  I.  M.  ST.  JOHN,        [Seal.] 

Col.  ^  thy  Burciiu. 

l^Donc  in  Duptitatc.'] 

[iJ^^NoTE. — This  is  the  original  form  of  contract  for  iron,  made 
by  the  bureau;  by  which  it  will  be  seen  the  maximum  price  was 
SlOU  per  ton;  but  by  the  provisions  of  the  assessuient  clause  (last 
two  paragraphs  on  first  pnge),  the  price  was  at  one  time  increased  to 
S124  per  ton ;  and  subseqiientl}^  by  the  provisions  of  the  mrne 
clause,  to  S350  per  ton  for  one-half  their  yield,  granting  them  the 
privilege  of  selling  the  other  half  on  their  own  account.  This  price 
i-uled  and  controlled  the  compensation  of  contractors  in  Virginia 
until  the  beginninj;  of  the  present  year,  when  they  met  at  this  place, 
and  in  lieu  of  asking  a  further  advance,  they  concluded  to  ask  only 
that  supplies  should  be  furnished  them  by  the  government,  or  that 
they  should  have  authority  to  purchase  the  surplus  of  farmers  at 
prices  not  to  exceed  fift}^  per  cent,  advance  on  thos^  of  the  govern- 
ment schedule.  The  latter  proposition  was  accepted,  and  the  present 
price  is  $3-50  per  ton  for  one-half  their  yield,  with  this  privilege  con- 
cerning supplies. 

JOHN  ELLICOTT,  Major. 


14 


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